US Automakers Report Billions in Losses from Tariffs

Major U.S. automakers General Motors and Stellantis are experiencing significant financial losses due to President Donald Trump's tariffs on foreign-made vehicles and car parts. GM reported a $1.1 billion impact on its second-quarter profits attributed to tariffs, expecting a total $4 billion to $5 billion loss for 2025, while Stellantis projected a $2.7 billion loss in the first half of the year linked to tariffs and related restructuring costs. These tariffs, including a 25% levy on vehicles and car parts and additional steel and aluminum tariffs, have led automakers to absorb costs temporarily but may soon result in higher consumer prices, reduced production, and fewer vehicle choices. Both companies are investing in U.S. production to mitigate tariff impacts, but new plants will not be operational for over a year. The tariffs have also disrupted integrated North American supply chains, prompting operational shifts across borders, including production reductions in Canada and Mexico. While the Trump administration asserts these tariffs will boost domestic manufacturing, automakers are seeking trade deals with Mexico, Canada, and South Korea to alleviate the financial strain.